Are Charities Breaking Minimum Wage Rules?


National Minimum Wages Rules define sleep in time as working time that is required to be compensated. Any employee sleeping over at night in a residential site or facility, but ready to attend to an emergency work required to be done is entitled to be paid under Working Time Regulations 1998.

Unite, the Union has raised the issue that many charities across the country are flouting these rules and not paying their employees accordingly. Charities are found to be offering compensatory offs in lieu of the work time put in by an employee, which is against the law.

Last December, the Employment Appeal Tribunal had ruled that the time spent at the residential care home at night was to be included in payment of wages to the employee as per Minimum Wages Act. Citing this case, Rebecca McGuirk, a partner at law firm Shoosmiths has advised that each case needs to be examined carefully with all facts and details. She hinted that there may be room for manipulation.

Rachael Maskell, National Officer -Not for Profit Sector found that a mental health charity at Glasgow underpaid its employees and flouted the rules put down by the NMW.

This Scottish charity offered compensatory offs to the employees in lieu of their sleep over hours spent. Though National Minimum Wage stipulates a current payment of £5.80 an hour in such cases of sleep over work time, many charities are flouting the rules. Non-payment would make the charity liable to legal action under unlawful deduction of wages.

It is estimated that about 170,000 UK charities not adhering to the norms and regulations in this area of employee compensation.

It is an irony that charities, which are involved in helping people, are not paying their employees properly.

Employers can keep themselves up to date with employment relations developments with a CIPD-accredited qualification; the Certificate in HR Practice (CHRP) and the Certificate in Employment Relations, Law and Practice (CERLAP). Both CIPD courses are taught on a fast-track basis by Workplace Law Training offering a combination of classroom and internet-based self-study – click CIPD Distance Learning for more information.

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